(c) "High-efficiency, low-emissions, distributed generation"
means a distributed generation facility of no more than ten
megawatts of interconnected capacity that is certified by the
commissioner under subdivision 3 as a high-efficiency,
low-emissions facility.

Subd. 2. Renewable and high-efficiency energy rate
options. (a) Each utility shall offer its customers, and
shall advertise the offer at least annually, one or more options
that allow a customer to determine that a certain amount of the
electricity generated or purchased on behalf of the customer is
renewable energy or energy generated by high-efficiency,
low-emissions, distributed generation such as fuel cells and
microturbines fueled by a renewable fuel.

(b) Each public utility shall file an implementation plan
within 90 days of July 1, 2001, to implement paragraph (a).

(c) Rates charged to customers must be calculated using the
utility's cost of acquiring the energy for the customer and must:

(1) reflect the difference between the cost of generating
or purchasing the renewable energy and the cost of generating or
purchasing the same amount of nonrenewable energy; and

(2) be distributed on a per kilowatt-hour basis among all
customers who choose to participate in the program.

(d) Implementation of these rate options may reflect a
reasonable amount of lead time necessary to arrange acquisition
of the energy. The utility may acquire the energy demanded by
customers, in whole or in part, through procuring or generating
the renewable energy directly, or through the purchase of
credits from a provider that has received certification of
eligible power supply pursuant to subdivision 3. If a utility
is not able to arrange an adequate supply of renewable or
high-efficiency energy to meet its customers' demand under this
section, the utility must file a report with the commission
detailing its efforts and reasons for its failure.

Subd. 3. Certification and tradeable credits. (a)
The commissioner shall certify a power supply or supplies as
eligible to satisfy customer requirements under this section
upon finding:

(1) the power supply is renewable energy or energy
generated by high-efficiency, low-emissions, distributed
generation; and

(2) the sales arrangements of energy from the supplies are
such that the power supply is only sold once to retail consumers.

(b) To facilitate compliance with this section, the
commission may, by order, establish a program for tradeable
credits for eligible power supplies.